We've done a few deals together in this way and currently hold 10 properties together - with an additional 3-unit closing next week.The basic structure made sense for me to get started - my partner provided the cash injection and I provided the time and effort to find the properties, fix the first couple and/or manage the contractors.

Any additional unforeseen issues because of power not being turned on could hurt but won’t completely kill the deal unless major repairs needed.

High is overrated.If you have any additional questions, reach out to me directly.Good Luck!

In addition, owner loaned us $100,000 at 6% simple interest for one year to make major repairs (installed heat pumps, replaced boiler (for heating water only), replaced some siding and major roof repairs.)We were very clear with each other what we each wanted out of the deal.

Assuming you did not invest originally.To clarify, I am coming across some opportunities where a sponsor is in the middle of the biz plan, their loan is reaching maturity, they need extra capital, and they are attempting to raise the extra capital from other LPs rather than or in addition to a capital call.They are offering "rescue capital" investors pref equity that is ahead of original common equity investors.

Your better bet is to find a long-term tenant to rent a room or more depending on how many additional bedrooms you have. 

I would have to assume there is power and water (either municipal or well) in addition.

But I’m thinking in order to use passive losses from other entities (multi family, SFR’s, etc) I would also have to show material participation in those activities in addition to the REPS, is that accurate?  

Seller agreed to knock down an additional $10g off the asking price Lessons learned?

We ran over schedule, went over budget , I paid additional carrying costs every month, and learned about significant issues later than I should have.